Amazon Stock Slumps on AI Spending Concerns Ahead of Q2 Earnings Report

Amazon's stock price has fallen 4.5% ahead of its July 30 earnings report, sparking concerns about the company's aggressive investment strategy in AI and cloud infrastructure.

The decline comes as investors reassess Amazon's spending on AI and cloud infrastructure, which is expected to reach $59 billion in capex this year.

Regulatory scrutiny and weakening cash flow are also contributing to investor unease, particularly with the upcoming earnings report set to reveal insights into AWS growth, e-commerce performance, and capital expenditures.

The company's entertainment business may face increased competition from Sky's proposed acquisition of ITV's broadcast and streaming assets in the UK.